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3 years ago

Fixed costs may be relevant in a decision. A. True B. False

Business

1 answer:

zhuklara [117]3 years ago

5 0

Answer:

A. True

Explanation:

Fixed costs can be defined as predetermined expenses in a business that remain constant for a specific period of time regardless of the quantity of production or level of outputs. Some examples of fixed costs in business are loan payments, employee salary, depreciation, rent, insurance, lease, utilities etc.

Fixed costs may be relevant in a decision because it affects the amount of future cash-flow of a business entity.

For instance, the high fixed costs are usually a determinant for pricing a product that aren't produced in mass because to break even, businesses would need to rake in more revenues to meet the the increasing (high) fixed costs.

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On January 1, 2019, Oriole Company purchased the following two machines for use in its production process.

Zarrin [17]

Answer and Explanation:

The journal entries are shown below:

1 Equipment $53,420

To Cash $53,420

(Being the equipment is purchased for cash is recorded)

The computation is given below:

= Cash price of machine + sales tax + shipping cost + insurance during shipping + installation and testing cost

= $49,500 + $3,650 + $100 + $60 + $110

= $53,420

2. Depreciation expense $9,614

To Accumulated Depreciation - Equipment $9,614

(Being the depreciation expense is recorded)

The computation is shown below:

= ($53,420 - $5,350) ÷ ( 5 years)

= $9,614

5 0

3 years ago

Harry Trading Company must choose its optimal capital structure. Currently, the firm has a 20 percent debt ratio and the firm ex

AnnyKZ [126]

Answer:

They should not make the change because the price of the stocks will decrease.

Explanation:

the current price of the stocks using the perpetuity formula = dividend / required rate of return

current price with current capital structure = $5.64 / 0.123 = $45.85

if the company changes its capital structure by increasing debt, the price of the stocks will be

$5.92 / 0.136 = $43.53

since the price of the stocks would actually decrease if the capital structure changes, the change should not be made. The stockholders' wealth is measured by the price of the stocks, and if the price of the stocks decreases, then the stockholders' wealth also decreases.

4 0

3 years ago

create a persuasive email to Mrs. Jarrett and Mrs. Haynes about recruiting graduating seniors to come work for you this summer.

Assoli18 [71]

Answer:

yoo my jym teacher name is mr haynes

Explanation:

omgirwkms if u can read that u need a hug

7 0

3 years ago

Which of the following is a characteristic of an unstructured interview? a. Conducted by a professional interviewer b. Focuses o

Gelneren [198K]

Unstructured Interviews are common in small businesses. Option C is correct.

<h2>What is an Unstructured Interview?</h2>

It refers to an interview in which the questions are not prearranged by the interviewer that is to be asked to the respondents.

Unstructured interviews are more casual and unrehearsed than structured interviews in which prearranged, standardized questions are asked.

This provides free-flowing conversation on respondents' personal qualities and knowledge related to relate to the work.

Since in small companies, the work areas of employees are wider than the big corporate.

Therefore, unstructured Interviews are commonly used in small businesses to get a deeper understanding of respondents' personal qualities related to work.

To know more about Unstructured:

Interview:brainly.com/question/12208322

5 0

2 years ago

Credit bureau decides if you recieve credit or not? true or false?

Vaselesa [24]

False

Credit Bureau supplies ratings based off of prior credit history. Companies / banks decide if you are worthy of loans based off of these ratings.

6 0

3 years ago